Insurers overcome disability woes

The Australian life/risk insurance sector appears to have finally overcome many of its challenges, particularly those around disability insurance, according to the latest data released by specialist research house, DEXX&R.

The latest DEXX&R Life Analysis Report covering the March quarter, revealed that the industry wrote $1.28 billion of lump sum new business in the 12 months ending March 2016, marginally down on the $1.3 billion recorded during 2015.

It said that of the top ten life companies, MLC, OnePath, TAL, Zurich, AIA Australia, and ClearView all recorded an increase in lump sum new business for the year ending March 2016.

On the key question of the state of the disability insurance segment, the DEXX&R analysis said total new disability income premiums increased by five per cent to $489 million over the year to March 2016, up from $467 million recorded in the twelve months to March 2015, noting that seven of the top ten companies recorded an increase in disability new business with AIA Australia recording an increase of 19 per cent to $28 million, OnePath an increase of 16 per cent to $89 million, TAL an increase of 15 per cent to $73 million, MLC an increase of 10 per cent to $86 million, Zurich an increase of 10 per cent to $24 million, Westpac an increase of six per cent to $60 million, and CommInsure an increase of three per cent to $27 million.

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Dealing with group insurance, the DEXX&R analysis said total in-force group risk business increased by 13 per cent to $6.1 billion over the twelve months to March 2016, up from $5.4 billion at March 2015.

It said that over the year ending March 2016 the top five companies TAL, AIA, CommInsure, Metlife, and MLC all recorded an increase in in-force group premiums.